Just curious - does anyone here use specific tax software that handles booth rental situations well? I'm currently using TurboSelf-Employed but it keeps asking me questions that don't really apply to my situation as a booth renter in a barber shop.

As someone who's dealt with similar confusion about booth rental arrangements, I want to emphasize that what you're describing is absolutely legitimate. The key distinction is that you're operating as an independent business owner who simply rents physical space - you're not an employee of the salon. The IRS uses the "ABC test" in many cases: (A) you're free from control and direction, (B) your work is outside the usual course of the hiring entity's business, and (C) you're customarily engaged in an independently established trade. Your situation clearly meets all three criteria. Those people commenting on the ad are likely thinking of situations where salons misclassify actual employees as contractors to avoid paying payroll taxes and benefits. That's completely different from legitimate booth rental where you maintain full business autonomy. The fact that the previous owner passed an audit is strong evidence that this arrangement is properly structured. Keep documenting your independent business operations and don't let uninformed opinions create unnecessary anxiety about a perfectly legal business model.

Watch out for state estate or inheritance taxes too! Everyone's focused on federal, but depending on where your father-in-law lived, there might be state taxes to deal with that have much lower exemptions than federal. Connecticut, for example, has a lower estate tax exemption than the federal one.

This is such a complex situation, and I really appreciate everyone sharing their experiences and insights. As someone who works in estate planning, I want to emphasize a few key points that haven't been fully addressed: First, timing is absolutely critical here. The 9-month deadline for filing Form 706 (with possible 6-month extension) isn't just about taxes owed - it's about preserving options. Even if the marital deduction eliminates all estate tax, filing preserves the portability election AND starts the statute of limitations running on IRS challenges to asset valuations. Second, the trust structure really does determine everything. If this was a revocable trust, the assets are included in the estate for tax purposes but may still qualify for the marital deduction depending on how the trust is structured post-death. If it's an irrevocable trust created during lifetime, you need to determine if it was a completed gift (requiring gift tax analysis) or if your father-in-law retained powers that kept it in his estate. Third, don't overlook the generation-skipping transfer tax implications if the trust has provisions for grandchildren or other skip persons. This can create additional filing requirements and potential taxes even when estate tax is avoided through the marital deduction. I'd strongly recommend getting professional help given the $14.5 million estate size - the cost of proper planning and compliance is minimal compared to potential penalties or missed opportunities.

INFO: Are you and your boyfriend financially supporting yourselves and your children together, or is your dad providing significant financial support to you? Also, how old are you? The rules are different depending on whether you're over 19 (or 24 if you're a student).

Based on everything you've shared, your dad has absolutely no legal basis to claim you as a dependent. The IRS has very clear rules for this: For a "qualifying child" dependent, you must live with the person claiming you for MORE THAN HALF THE YEAR. Since you haven't lived with your dad at all in the past year, this requirement fails completely. For a "qualifying relative" dependent, the person must provide MORE THAN HALF of your total support. Your dad paying $600/year for car insurance and $50/month for your phone ($1,200 total annually) is nowhere near half of what it costs to support you, your boyfriend, and two children. Your registered domestic partnership establishes that you're part of a separate household unit. You're functioning as a family with your boyfriend and children - this is completely different from being financially dependent on a parent. Tell your dad straight up: "The IRS requires dependents to live with the person claiming them for at least 6 months of the year. Since I haven't lived with you at all, you legally cannot claim me. Period." Don't let him argue with tax law - these aren't opinions, they're federal requirements. If he tries to claim you anyway, the IRS will catch it when returns are processed and he'll face penalties for fraudulent claiming. Protect yourself by filing your own return correctly.

Wait I'm confused about the amended return process. Does filing an amended return increase your chances of getting audited? I'm in a similar situation but worried about drawing attention to my return.

I've been through this exact situation and it's so frustrating! Here's what I learned: you definitely have options, but you need to act relatively quickly since you have 3 years from the filing date to amend and get a refund. First, get everything documented. Have that new tax professional write up exactly what errors were made and what the correct approach should have been. This documentation is crucial whether you're trying to work things out with your original accountant or need to take other steps. Then approach your original accountant professionally with the documentation. Don't go in guns blazing - just present the facts: "I had my return reviewed and these specific errors were identified. How can we resolve this?" Many accountants will fix their mistakes once presented with clear evidence, especially if they're worried about their reputation. If they refuse to help, you still have several options: - File the amended return yourself or hire someone else - File a complaint with your state board of accountancy (if they're a CPA) - Pursue compensation through small claims court for larger amounts The key is staying organized and keeping detailed records of all communications. You signed the return, yes, but that doesn't mean you're stuck with an accountant's professional negligence. Good luck!

19 The benefits your employer is offering (vacation, sick days, holidays) are actually a red flag for proper 1099 classification. True independent contractors don't typically receive these employee-style benefits because they're supposed to be running their own business and setting their own schedules. Beyond the tax implications others have mentioned, consider this: if the IRS later determines you were misclassified, you could be liable for penalties and interest on unpaid taxes. Your employer would also face significant penalties for avoiding payroll taxes. My advice? Run the numbers both ways, but also document everything about your work arrangement - hours, location, equipment used, who controls your work methods, etc. This will help determine if you're legally supposed to be W-2 or 1099 regardless of what your employer offers. The classification should be based on the actual working relationship, not what sounds financially better.

This is a really complex situation that goes beyond just the tax math. While everyone's focused on the financial calculations, I want to emphasize what others have touched on - the legal classification issue is huge here. The fact that your employer is offering you "benefits" like vacation and sick days while calling you a 1099 contractor is a major red flag. The IRS looks at three main factors: behavioral control (do they control how you do your work?), financial control (do you have opportunity for profit/loss?), and relationship type (permanent vs project-based work, benefits, etc.). If you're doing the same job at the same location with the same schedule, just switching your tax classification doesn't make you a legitimate contractor. This could expose both you and your employer to penalties down the road. Before making any decision, I'd strongly recommend consulting with a tax professional who can review your specific work arrangement. They can help you understand not just the tax implications, but whether this classification change would even be legally defensible if questioned later. The short-term financial benefits might not be worth the long-term compliance risks.